Anchored in a subsidiary evolutionary framework,this paper analyzes how headquarters of multinational corporations canorchestrate its network of subsidiaries. Headquarters orchestration is a valueadding activity aimed at increasing the performance of the organization. Grantingsubsidiaries autonomy and giving them attention is found to positivelyinfluence the scope of subsidiary activities as well as the level of subsidiarycompetencies. This corresponds to how headquarters, as a hub-type of firm, canadd value by orchestrating for subsidiary evolution. Furthermore, our resultsindicate that if subsidiaries evolve it has positive effects on the overall performanceof the multinational corporation. Thus, our findings help to explain howheadquarters may create value within the multinational corporation in terms ofincreasing subsidiaries’ contribution to performance. The results, based on asample of 2107 subsidiaries, elucidate the entrepreneurial role and function ofheadquarters as an important orchestrator of the multinational corporation forsubsidiary evolution and value creation. Theoretically, this extends theunderstanding of drivers and effects of subsidiary evolution and assigns animportant role and function to headquarters in the orchestration of networkedmultinational corporations.